HomeworkLib
Question

This morning you purchased one share of stock for $44. The stock pays $3.20 per share...

This morning you purchased one share of stock for $44. The stock pays $3.20 per share each year as a dividend. What must the stock price be one year from now if you want to earn a total return of 13 percent for the year?

$46.52

$49.49

$51.67

$52.92

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Total return=(End value-Beginning value+Dividend)/Beginning value  

0.13=(End value-44+3.2)/44

(0.13*44)=End value-40.8

End value=5.72+40.8

=$46.52

0 0
Add a comment
Know the answer?
Add Answer to:
This morning you purchased one share of stock for $44. The stock pays $3.20 per share...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 12. This morning you purchased one share of stock for $14. The stock pays $.20 per...

    12. This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year? $14.54 $13.12 $13.46 $15.01 $14.88

  • You have just purchased a share of stock for $20.29. The company is expected to pay...

    You have just purchased a share of stock for $20.29. The company is expected to pay a dividend of $0.61 per share in exactly one year. If you want to earn a 9.7% return on your​ investment, what price do you need if you expect to sell the share immediately after it pays the​ dividend? The price one year from now should be? (Round to the nearest​ cent.)

  • Please solve. You have just purchased a share of stock for $21.48. The company is expected...

    Please solve. You have just purchased a share of stock for $21.48. The company is expected to pay a dividend of $0.68 per share in exactly one year. If you want to earn a 9.1 % return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $ (Round to the nearest cent.)

  • This morning you purchased a stock that just paid an annual dividend of $1.70 per share.

     This morning you purchased a stock that just paid an annual dividend of $1.70 per share. You require a return of 9.5 percent and the dividend will increase at an annual growth rate of 2.6 percent. If you sell this stock in three years, what will your capital gain be? Multiple Choice $2.31 $2.60 $2.02 $2.66 Fowler is expected to pay a dividend of $1.53 one year from today and $1.68 two years from today. The company has a dividend payout ratio of 45 percent and...

  • You have just purchased a share of stock for $ 18.86 The company is expected to...

    You have just purchased a share of stock for $ 18.86 The company is expected to pay a dividend of $ 0.58 per share in exactly one year. If you want to earn a 10.6 % return on your​ investment, what price do you need if you expect to sell the share immediately after it pays the​ dividend?

  • This morning you purchased a stock that just paid an annual dividend of $3.10 per share....

    This morning you purchased a stock that just paid an annual dividend of $3.10 per share. You require a return of 9.2 percent and the dividend will increase at an annual growth rate of 4 percent. If you sell this stock in three years, what will your capital gain be? $5.87 $2.48 $7.74 $4.00 $10.13

  • This morning you purchased a stock that just paid an annual dividend of $3.10 per share....

    This morning you purchased a stock that just paid an annual dividend of $3.10 per share. You require a return of 9.2 percent and the dividend will increase at an annual growth rate of 4 percent. If you sell this stock in three years, what will your capital gain be? $4.00 $5.87 $10.13 $7.74 $2.48

  • The current price of digital X Industries stock is $44 per share. Current sales per share...

    The current price of digital X Industries stock is $44 per share. Current sales per share are $21.35, the sales growth rate is 4 percent, and does not pay a dividend. The expected return on Digital X stock is 13 percent. Calculate the sales per share one year ahead. Calculate the P/S ratio one year ahead.

  • You have just purchased a share for $30.12. The company is expected to pay a dividend...

    You have just purchased a share for $30.12. The company is expected to pay a dividend of $0.74 per share in exactly one year. If you want to earn a 9.5% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $ . (Round to the nearest cent.)

  • 2. Ricky Bobby Incorporated stock is selling for $16.48 this morning. Analysts believe the stock will...

    2. Ricky Bobby Incorporated stock is selling for $16.48 this morning. Analysts believe the stock will sell for $19.57 in one year. The stock is expected to pay a $0.58 dividend per share. What return will you earn if you purchase now? 3. CPJ Industries has a share price today of $22.39. If CPJ is expected to pay a dividend of $0.69 per share this coming year, and the stock price is expected to grow to $22.76 by the end...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT